Time for a new car. There is no money for it, but that is not a problem. Take out credit for it? What for? Finally, there is leasing . Who buys a car for cash today? Many think so, not just when it comes to cars. Leasing makes a lot possible.
What is leasing?
There is a very simple concept behind the term leasing. If someone is in possession of an item, then he is the lessor and leaves or leases this item in his possession to another person for a predetermined term. This is called the lessee . During the entire term, however, this particular object, for example a car, remains in the lessor’s possession. The lessee can use the item for a fixed leasing fee. All costs incurred for servicing and maintenance remain with the lessor, as do all warranty claims. Depending on the design of the leasing contract, it can be agreed that after the leasing period has expired the thing is or has to be bought by the lessee. In this case one speaks of the so-called right to tender . In a nutshell, leasing is a contract that is very similar to a purchase or rental agreement.
How does leasing work?
Leasing means nothing more than renting or leasing something. Leasing is a form of financing in which the use of an item is contractually regulated between the lessor and the lessee for a certain period of time. During the period of use , the lessee has to pay the lessor a monthly leasing rate . When the agreed term ends, the lessee can decide to buy the item, extend the leasing contract or return the item to the lessor. A distinction must be made between two types of leasing .
- Direct leasing: The thing or object is rented directly from the manufacturer
- Indirect leasing: the object or thing is bought from an independent leasing company and then rented out.
In Germany, leasing is most often used in the area of vehicles.
What can you lease?
Anyone who only limits leasing to the subject of cars or vehicles is totally wrong. Basically, almost anything can be purchased with leasing. This is exactly what makes leasing very interesting for you as an entrepreneur.
|P roduktionsanlagen||Machine tools||IT systems||commercial vehicles|
|Motor vehicles||Printing machines||Construction machinery||Warehouse equipment|
|Buses and trains||Operating devices||Intangible assets such as software||property|
What contractual forms are there for leasing?
There are different types of contract for leasing. For you as an entrepreneur, it is important to pay close attention to the so-called leasing decrees . These are important for you if you want to claim the leasing contract for tax purposes. The leasing decrees were set by the Federal Ministry of Finance. A distinction is made between two different forms of leasing contract.
- Operate leasing
- Finance leasing
Description Operate Leasing
As a lessee you acquire the operating lease the right to use an object that you can cancel at any time for a short time. You can largely compare this leasing contract with the civil law leasing contract. Operate leasing focuses on the short-term rental of capital goods . As a company, this helps you when it comes to bridging bottlenecks in production or sales for a short time. A prominent feature of operate leasing is the fact that the lessor usually does not have to pay the financing costs in one contract period . A full payback can only be achieved if the property is rented out several times and then sold.
Further features of operate leasing
- Contract duration: This is usually limited to a relatively short period of time. If you conclude a contract for an indefinite period, you can make use of a right of termination within the agreed period. The service life of the property predominantly exceeds the contractually stipulated useful life.
- Economic risk: The economic risk and the property risk are borne exclusively by the lessor. These risks are understood to mean, for example, the danger that the property that is being leased will be technically out of date. The risk of theft, damage or defects is also included here.
- Maintenance: Maintenance is also the responsibility of the lessor. His interest is therefore particularly high that his property is always in good condition, since he often wants to rent it out to other lessees.
Description finance leasing
When we talk about leasing, we actually mean finance leasing in practice . This form is considered to be actual leasing and here the contracts are geared towards a medium-term to long-term period. There are also different characteristics here.
Features of finance leasing
- Contract term: The contract term is medium to long-term and there are basic rental periods that cannot be terminated. The operational useful life of the rented property is usually reached within these basic rental periods.
- Property risk: With finance leasing, the risk lies with the lessee. He is also responsible for taking out the necessary insurance for the property and any repairs that may arise.
- Maintenance: Here, too, the lessee is responsible. He is the person who initiated the acquisition or manufacture of the leasing object and must therefore also ensure that it maintains its value.